GREY MARKET GUNS IN CANADA

Are Grey Market Guns Worth It?

Although the term "shades of grey" may now be associated with quite an unfortunately popular work of fiction, it had for years prior served as a wonderfully vague descriptor of damn near everything from Canada's political landscape to the discussion of morality versus legality. But one thing it's not often associated with is the gun market. After all, in a society encumbered by as many legislative categorizations and restrictions as Canada's, the only "grey" guns you'd expect to come across would be those treated to a particularly light parkerizing process. But you'd be wrong.

What is a grey market gun?

In short, a grey market gun is a gun that's been brought into the country by some means outside the manufacturer's sanctioned distribution network. As the term implies, there's an entire range of ways in which this occurrence might take place, but the most common is quite innocuous: simply importing the gun from a U.S. retailer. Under most circumstances, this procedure is entirely legal, with both the exporting U.S. retailer and Canadian importer bearing all of the official paperwork and permits required to accomplish the purchase. Of particular interest to firearms collectors and those that prefer their guns with a certain air of exclusivity, this procedure allows Canadians to acquire rare, uncommon, and antique guns for which there are no Canadian distributor networks. As one would expect with such firearms, post-purchase service is quite often the responsibility of the purchaser, with no warranty expected nor parts support guaranteed. The key word here is "expected."

Are there any downsides?

Isn't there always? Although the purchaser of a rare or antique rifle might not expect any post-purchase service, parts, or warranty support, that's not always the case when someone purchases a brand new handgun, rifle, or shotgun made by any number of contemporary manufacturers. In fact, when many purchase a brand new gun, the expectation is that their purchase is fully guaranteed for typically one year. However, that expectation hinges upon the simple fact that manufacturers are only prepared to honour their warranties when the firearm is purchased through a licensed distributor. This, of course, means that firearms purchased outside the recognized distribution network are frequently privy to none of that guaranteed service nor parts availability of those distributed through the recognized network of dealers and retailers. And although it might seem preposterous that manufacturers might neglect to service a firearm that's been purchased and imported in a legal fashion based on nothing more than the method by which it was procured, the issue is one of control: manufacturers can only guarantee the quality of those products over which they have direct control over the manufacture and distribution thereof.

Additionally, there is the issue of the additional services some manufacturers offer when one of their firearms is purchased. This may vary from simple rebate programs to complex value-added services. For example in researching the Perazzi article found elsewhere in this issue, Calibre staff came across a Vancouver-based "importer and distributor" of Perazzi shotguns only to discover that their grey market wares were off-the-rack guns bought and imported from Italy, and as such would not be fitted to their new owners. Even worse, as even the off-the-rack Perazzis sold by grey market importers are still custom made to a set of measurements in exactly the same fashion as a custom gun would be, there's no value to be found in purchasing such a gun versus having one made to your specifications. In fact, the Vancouver-based retailer's off-the-rack offerings were actually more expensive than purchasing our custom-made Perazzi test gun directly from Perazzi Canada.

So, what's the attraction of the grey market?

Well, there are a couple instances in which the grey market can prove quite useful to the would-be gun owner. The first and foremost is obviously for those that are looking for something that simply can't be found through a licensed distributor. From historic flintlocks to thoroughly modern tactical arms from niche manufacturers, there are far more firearms floating around the world without a licensed distributor network than there are with. And when you start to consider that nearly everything that you can possibly stick to a gun is similarly controlled, from fore-ends to stock sets to sights, the grey market can rapidly begin to look like the go-to resource for those with a taste for the elusive.

And of course there is the price.

The export and import of firearms, en masse from the American market, requires a downright stupefying amount of paperwork from both parties. As such, manufacturers often require significant monetary commitments from would-be Canadian distributors in order to ensure their investment in procuring an export license remains a worthwhile endeavour. This often comes in the form of notoriously high minimum order prices that frequently run into the hundreds of thousands of dollars. For Canadian distributors serving a relatively low-volume market, that often represents a significant amount of capital that earns no return on their investment until it's sold, and can actually result in losing money if the cross-border currency exchange drops. Add in the relatively low profit margin on firearms, and it's not difficult to see how some guns can be cheaper on the grey market.

So what do I need to look out for?

Well, first and foremost, there's the price; while perusing the envious prices listed on websites like CDNN and Gunbroker might have you thinking that the grey market might be the best way to fill up a gun safe, it's important to consider that the grey market comes with its own fees. Oftentimes there are brokerage fees that can run anywhere from $100 to $250 per firearm, as well as sales tax and up to a 7% duty. Add in the shipping cost, and more often than not that cheap US gun that'd take three weeks to arrive ends up costing as much or more than its Canadian counterpart sitting under glass at the local shop. And of course, there's always the exchange rate to account for... which as of late is nothing short of catastrophic.

And then there's the issue of legitimate legality. Although still infrequent, the lure of a quick buck has taken numerous grey market imports to the brink of illegality, both in the United States and Canada. In a recent case, a handful of firearms were modified in the United States for export to Canada. The nature of the modifications were such that they broke numerous US export and firearms laws in order to make them appear legal for export, only to find that those same modifications brought them under scrutiny by Canadian officials. And in this country, mere scrutiny gives way to seizures far too readily to make such a purchase a risk-free proposition.

And it's not a matter that's particular to firearms alone. With everything from rifle scopes to tactical shotgun accessories all requiring complex export permits and import paperwork, it's entirely possible to stumble across products in the Canadian marketplace that were simply smuggled out of the United States in either a car trunk or a parcel package. And again, although this might not be a problem for the fellow that's looking for a better deal on his next hunting optic, it can be a problem should that same fellow ever desire to take that hunting optic on a trip south of the border... or rather, if he ever wanted to bring his optic back from said hunting trip!

So, are they worth it?

The world is not a black and white place, and so the answer to such a question as "are grey market guns really worth it" is both yes, and no. If you're on the hunt for that used Heckler and Koch handgun that's made of pure unobtanium, or a Spanish Civil War Mauser, then you're probably well served by the various import services found online. Conversely, if you're trying to decide by between a brand new Sig or Smith, then yes, you probably want to make sure that you're getting the real deal from a licensed distributor or retailer. Because be it for after-sale service or simply because it wasn't any cheaper from the US, every item that's bought through a licensed distributor serves as an investment in the Canadian firearms industry. Those dollars prove to American manufacturers that the Canadian market wants their products, and it's the only way to ensure that they'll continue to invest in those all-important export permits. And hey, when was the last time you took a trip to the local gun shop and didn't find something else you wanted, too?